tax deductable?

"Snatch",

You are confusing two different methods of getting tax relief for a business vehicle - the "full cost" method whereby you get relief for the actual costs (less any private usage) ie the cost fo the vehicle (which is relived annual via a 'capital allowance') and the cost of petrol, repairs etc and the "fixed profit mileage scheme" which is the 40p per mile for business miles travelled in your own car.

It depends on the size of your business (you cant claim the mileage allowance if your business is over the VAT threshold and you are a sole trader), and what structure you have (sole trader or limited company) and also what you have claimed to date what method you can chose but its an either or thing. Would suggest you have your accountant work out the best method for your circumstances. The full cost method in particular gets rather complicated.

Regards,

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James Smith
Chartered Accountant
www.jamesesmith.co.uk
01235 536 773

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Your indispensable guide to Small Business Bookkeeping, Self-Assessment & VAT

hi im a sole trade , currently using my car, i am not over the vat threshhold, to date i am claiming 40p per mile for business travel(market trader) just for the 2 markets i am doing

i intend to buy another vehicle, and stop claiming amap and then claim all my expenses back via "full cost" as i will only be using the van for business purposes